The Korea Herald

Dismal growth prospects abroad likely to squeeze Korean economy

Sept 18, 2011

The government has been pushed to lower growth projections for the Korean economy as debt in Europe and dismal growth prospects in the U.S. are expected to set back exports and consumer spending this year and next.The latest data shows that shrinking consumer demand and depressed business sentiment
Loan defaults on the rise

Sept 18, 2011

The number of loan defaults in Korea reached 1.09 million as of June, up 19.5 percent from six months earlier, credit data showed on Sunday. According to Nice Information Service, the number of people who failed to pay back loans they got from local lenders and financial firms rose by 179,000 in the
Higher volatility spurs speculative trades

Sept 18, 2011

Hot money on currency market and risky bets on derivatives on the riseWith the local stock market riding a wave of volatility in recent weeks, speculative transactions have increased at an alarming pace, the country’s financial regulators warned on Sunday. Although it is often difficult to distingui
Government suspends 7 savings banks

Sept 18, 2011

The financial regulator on Sunday suspended operation of seven more savings banks that have failed to meet capital adequacy ratio set by the International Bank of Settlements, including major players Tomato and Jeil. A total of 16 savings banks have been suspended so far this year.“We decided t
Alleged renegade UBS trader had luxury lifestyle

Sept 17, 2011

LONDON (AP) — Educated at an exclusive school in a picturesque patch of English countryside, Ghana-born trader Kweku Adoboli was known to neighbors as a polite and well dressed young man who mixed grueling hours in London's financial district with a lavish social life in the capital's nightspo
Seoul to unveil list of troubled savings banks

Sept 16, 2011

Senior regulatory officials are considering the timing of the announcement of the list of debt-saddled savings banks, which will face business suspension.In particular, the officials seem extremely cautious over choosing the date as the Financial Services Commission and the Financial Supervisory Ser
Rogue trader causes $2 billion loss at UBS

Sept 15, 2011

GENEVA (AP) — Swiss banking giant UBS said Thursday that a rogue trader has caused it an estimated loss of $2 billion, stunning a beleaguered banking industry that has proven vulnerable to unauthorized trades. Police in London said they arrested a 31-year-old man in connection with the loss.Sw
Conglomerates scrambling to secure cash

Sept 15, 2011

Korea’s conglomerates are scrambling to secure capital at a pace that suggests a credit crunch might be in the offing amid growing concerns over the global economy. The country’s large companies have raised about 60 trillion won ($54.6 billion) this year by issuing corporate bonds, drawing loans fro
Korea alert to possible impact of Europe crisis

Sept 15, 2011

Senior official conducts virtual intervention in won-dollar marketPolicymakers have stepped up again to minimize negative effects on the local financial markets amid the eurozone debt crisis, following their efforts in early August.Their key countermeasures included curbing steep depreciation of the
BOK denies report on OTC purchase of yuan bonds

Sept 15, 2011

South Korea’s central bank has not submitted an application to its Chinese counterpart to get approval for investment in yuan bonds traded on China’s over-the-counter market, a bank official said Thursday.The remarks came after a local daily reported Thursday that the Bank of Korea is preparing to i
Brokerages boost baby boomer R&D

Sept 15, 2011

Firms see fresh opportunity in providing new retirement-related asset managementSouth Korea’s major brokerages houses are setting up research centers targeting the country’s baby boomer generation in a bid to take a share in potentially huge securities-related markets.The term “baby boomers” refers
Citibank Korea pays highest salary among lenders

Sept 15, 2011

Citibank Korea Inc. paid the highest salary among major banks in the country in the first half of this year, industry data showed Thursday. The South Korean unit of the U.S.-based Citigroup Inc. paid an average of 6.17 million won (US$5,593) a month to its workers in January-June period, according t
Gold has been most profitable since Lehman Brothers’ collapse

Sept 14, 2011

Gold has been the most profitable investment vehicle since the collapse of Lehman Brothers Holdings in 2008, a survey showed Wednesday.According to the data compiled by the Yonhap news agency through banks and securities firms, the price of gold has increased 137.5 percent since the U.S.-based finan
Woori Card moving to stand alone again

Sept 14, 2011

Woori Financial Group’s project to launch a stand-alone credit card operation is drawing interest as financial regulators move to sell dominant shares of the state-owned group.The financial group is scheduled to convene a board meeting this month to approve its plan to separate Woori Card from Woori
Samsung Card to sell 20% stake in Everland

Sept 14, 2011

Stake sale signals major shift in control of Samsung GroupSamsung Card Co. said on Wednesday it plans to sell its 20.64 percent stake in its affiliate Samsung Everland Inc., which acts as Samsung’s Group’s holding company, sparking keen interest about possible stake buyers.Samsung Card, which owns a